ALAZAR DEGEFU ACCT 2301-FINANCIAL For multiple choice questions, simply circle the correct letter only, on the question sheet MID-SEMESTER EXAM-PART ONE answers on separate sheets. (Numbers i1, 20, and 21 are non-multiple choice questions). 1. Due to an oversight, a company made no adjusting entry for accrued and unpaid employee wages December 31. This oversight would: A. Understate net income by $24,000 C. Overstate assets by $24,000 B.Overstate net income by $24,000 Understate assets by $24,000 2. Which of the following accounts would be closed at the end of the accounting period? Accounts Receivable B. Unearned Consulting Fees D. Retained Earnings C. Service Fees Earned 3. Compute profit margin ratio given the following information. Cost of Goods Sold $28,000 21,400 400,000 Net Income ross Profit .796 C. 1.65% D. 6.64% 4. Which of the following accounting principles dictates when expenses are recognized? A. Revenue recognition principle C. Business entity principle Monetary unit principle DMatching principle 5. The primary objective of financial accounting is: To serve the decision-making needs of internal users B. To monitor and control company activities CTo provide financial statements to help external users analyze and interpret an organization's activities D. To provide information on both the costs and benefits of managing products and services. 6. The Retained Earnings account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800 and dividends are $9,000, what is the ending balance in the Retained ings account after all closing entries are made? 458,000 B. $15,400 C.$23,400 D. $17,000 7. Which of the following statements is true? Retained earnings must be closed each accounting period B )A post-closing trial balance should include only permanent accounts Information on the work sheet can be used in place of preparing financial statementsf D By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts 8. Kader Co. paid $35,000 in dividends during the current year. The entry needed to close the dividends account is: A. Debit Income Summary and credit Dividends for $35,000 (B) Debit Dividends and credit Cash for $35,000 C. Debit Retained Eamings and credit Dividends for $35,000. D. Debit Income Summary and credit Cash for $35,000. 9. Which of the following statements are true? A. If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions C. Another name for trial balance is chart of accounts The trial balance is a book of original entry DThe trial balance is a list of all accounts from the ledger with their balances at a point in time. 10. Accumulated Depreciation, Accounts Receivable and Service Fees Eamed would be sorted to which respective columnar sections in completing a work sheet